Why You Should Be Considering Incorporation For Your Business
Whether you have a medium sized business or you are an independent contractor or you run a small side business to fulfil your entrepreneurial flare, incorporating your venture is always a smart choice to make. In addition to safeguarding your commercial and legal interests, timely incorporation not only preempts the possibility of probable pitfalls but also ensures that the future of your business is secure as opposed to other unregulated structures.
Here are some of ways in which incorporating can benefit your business:
It’s all in the Brand
Registration of your company is the first step to strengthen and protect your business and brand name. Not only does it curtail the possibility of competitors starting a business under the same name (to gain undue advantage from your popularity) but also it helps in further building your brand, adding exclusivity, promotes upselling and significantly improves your marketing and advertising strategies.
Widening the pool
Another important reason businesses opt for company incorporation is the legitimacy attached to a company structure as compared to a sole proprietorship or partnership. Once incorporated, your business is more likely to:
raise funding from investors,
form alliances with other businesses,
find accredited advisors to support your business’s growth
as well as access to a better pool of employees to support your operations
A company structure not only attracts better resource during the hiring process but also ensures a bigger and better customer base for your business. Statistically, potential customers are more likely to be drawn to those businesses which are incorporated owing to the simple fact that companies are far more regulated than other corporate structures meaning are more likely to play by the rules which in turn serves as greater customer faith in the dealings of your business
Protecting personal assets
The most important reason businesses tend to go for incorporation is that it creates a separates a legal entity of your business. This means that once incorporated your business is treated as a separate legal person and all its profits and losses, claims and disputes are attributable to the business alone owing little to no liability on you. Your exposure is limited to the amount of investment made in the business. This is fundamentally different from a sole proprietorship where in case of loss the business owner has to repay for the incurred losses from his personal assets (home, car etc.) and savings.
An incorporated business is taxed separately from the owner as the income generated by the business is not treated as the personal income of the owner due to its separate identity structure explained above. Not only this, many small to medium sized companies enjoy tax subsidies and other forms of government induced easements and benefits. While these are granted in order to promote overall economic growth in the country, there is no denying that this gives a leg up to incorporated structures in its quest of commercial advancement.
Since everyone’s situation is unique, you must always consult with a legal and tax consultant to know what best works for your business.
Power up your business
We make it easy to incorporate with step-by-step guidance